Sections in this chapter
Resources
Section 1 – Introduction
The approach to the business valuation process can be summed up as follows: keep it simple, keep it relevant to the issues and outcome(s) you are trying to achieve and, keep it proportionate to the costs of the valuation process.
Section 2 – Proportionality
In most divorce situations there is no intention to sell the business or business interests so why spend a lot of money on a valuation?
Section 3 – Instructing your valuation expert
Is one better than two when it comes to choosing an accountant to value your business interests and if one accountant is chosen by both of you how do you go about selecting them?
Section 4 – Instructions to the Expert
It is crucial that the valuer receives a clear, concise and accurate set of instructions which means that you will have to be very clear yourselves about what you want the valuer to do and how this is going to help you make decisions and reach a fair financial outcome, in mediation.
Section 5 – When are you unlikely to require a valuation?
Is there a ‘better way’ to obtain a reasonable, broad brush value of the business especially if there is no intention of selling it.
Section 6 – When is a formal valuation required?
Most people want to reach a fair financial mediated outcome?
How will you know whether it is fair unless you understand all the facts and implications of one decision over another?